An Option Can Be Priced at Less Than Zero Because

question 8

True/False

An option can be priced at less than zero because it can potentially generate a large profit for its owner.

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Definitions:

Genetic Predisposition

The increased likelihood of developing a particular disease or trait based on a person's genetic makeup.

Drug/Alcohol Addiction

A chronic disease characterized by compulsive drug seeking and use, despite harmful consequences, and changes in the brain, which can be long-lasting.

Fetal Brain Damage

Injury to the brain of a fetus, which can occur due to various factors such as oxygen deprivation, infection, or exposure to toxic substances.

Schizophrenia

A mental disorder characterized by abnormal behavior, strange speech, and a decreased ability to understand reality.